Broker's full-year revenue to come in below forecast
Manchester-based broker CBG has warned that its adjusted profit before tax for the full year of 2010 is expected to be "significantly below" current expectations.
The broker said that since its interim announcement it has continued to trade profitably. However, it added that while its cost base is in line with expectations, revenue is likley to be lower than the market forecast, resulting in a lower profit.
CBG said the market background for its insurance broking division is still highly competitive and margins remain under pressure due to a combination of increased competition and difficult economic conditions. New business activity has been very encouraging during the second half of the year, according to the broker, as has the continuing development of niche schemes.
Within CBG's financial services division the financial planning proposition continues to evolve although the general lack of confidence in the economic climate has meant that this has not benefited revenues as quickly as had been anticipated.
CBG made a profit of £163,000 in the first half of 2010, compared with a loss of £50,000 for the same period in 2009.
The company expects to release its preliminary full-year 2010 results in March 2011.
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